April 30 May 31 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payrol1 (paid with cash) Factory overhead Indirect materials $40,000 9, 200 57,000 $ 58,000 20,500 33,300 177,000 100,000 Indirect labor Other overhead costs Sales (received in cash) 15,000 23,000 97,500 1,100,000 55% Predetermined overhead rate based on direct labor cost Compute the following amounts for the month of May using T-accounts. 1. Cost of direct materials used. 2. Cost of direct labor used. 3. Cost of goods manufactured. 4. Cost of goods sold." 5. Gross profit. 6. Overapplied or underapplied overhead. "Do not consider any underapplied or overapplied overhead.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Finished Goods (FG) Inventory
Factory Overhead
April 30
57,000
Cost of goods sold
Cost of goods manuf.
May 31
57,000
Income statement (partial)
Transcribed Image Text:Finished Goods (FG) Inventory Factory Overhead April 30 57,000 Cost of goods sold Cost of goods manuf. May 31 57,000 Income statement (partial)
April 30
May 31
Inventories
Raw materials
Work in process
Finished goods
$ 40,000
9, 200
57,000
58,000
20,500
33,300
Activities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory overhead
177,000
100,000
Indirect materials
15,000
Indirect labor
Other overhead costs
23,000
97,500
Sales (received in cash)
Predetermined overhead rate based on direct labor cost
1,100,000
55%
Compute the following amounts for the month of May using T-accounts.
1. Cost of direct materials used.
2. Cost of direct labor used.
3. Cost of goods manufactured.
4. Cost of goods sold.*
5. Gross profit.
6. Overapplied or underapplied overhead.
*Do not consider any underapplied or overapplied overhead.
Raw Materials (RM)
Work in Process (WIP)
15,000 Indirect materials
April 30
RM purchases
40,000
April 30
9,200
177,000
144.000 DM used
DM used
144,000
DL used
77,000
Overhead applied
May 31
............
May 31
58,000
230,200
Transcribed Image Text:April 30 May 31 Inventories Raw materials Work in process Finished goods $ 40,000 9, 200 57,000 58,000 20,500 33,300 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 177,000 100,000 Indirect materials 15,000 Indirect labor Other overhead costs 23,000 97,500 Sales (received in cash) Predetermined overhead rate based on direct labor cost 1,100,000 55% Compute the following amounts for the month of May using T-accounts. 1. Cost of direct materials used. 2. Cost of direct labor used. 3. Cost of goods manufactured. 4. Cost of goods sold.* 5. Gross profit. 6. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead. Raw Materials (RM) Work in Process (WIP) 15,000 Indirect materials April 30 RM purchases 40,000 April 30 9,200 177,000 144.000 DM used DM used 144,000 DL used 77,000 Overhead applied May 31 ............ May 31 58,000 230,200
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